Getting a loan out of state?

21 Replies

I’ve been saving my money and was wanting to invest it in long term rental properties. I live in CA but the property prices are too high for me to get started. I would like to start out by buying something around $100k with 20% down. Is that obtainable? Thanks!

Off hand that I'd say your expressed pricing point is Mississippi.  I'd suggest running a forum search for Mississippi.  MULTIPLE posts about successful deals under $100k in that state.  That being said, please don't limit your search based on my quick thought.  Many Californians invest OOS with financing - suggest you start networking locally as well.  PM me and I'd be happy to help you more specifically.  I'm not a realtor or property manager, but I'm happy to share information.  * When you've narrowed down which specific cities you want to invest in and repost, you'll find there's many responsive local Realtors that will be eager to engage with you.  

Very Obtainable! There are a lot of markets that will fit into your criteria. Check out:

Birmingham, Atlanta, Indianapolis, St Louis, Kansas City, Memphis, Little Rock, Indianapolis, Greenville, Jacksonville, Tampa, Houston, San Antonio, Little Rock, Milwaukee, Cincinnati, Dayton, Cleveland, Ohio, or other secondary or tertiary markets.

What your looking for is theoretically possible but keep in mind that there are other costs.  You could be looking at 5k + in closing costs just to get the property.  Also you will need some money for initial repairs, possible initial vacancy, and general reserves.  If the property looks really clean then ~5k in reserves would be sensible.  You won’t have any equity in the home to use in case of emergency for a few years so you need to have the funds to cover the unexpected.

Last thing is that most lenders I have spoken to are at 25% down on rental homes right now.  If you have someone at 20% let me know.

That's certainly attainable in the San Antonio market. Don't expect an A-class property for that price though. 

Originally posted by @Steven Ciccone :

I’ve been saving my money and was wanting to invest it in long term rental properties. I live in CA but the property prices are too high for me to get started. I would like to start out by buying something around $100k with 20% down. Is that obtainable? Thanks!

Yes, very possible. Columbus, OH has a lot of great opportunities. The market has great population and economic growth as well, which is great for my properties. 

Originally posted by @Steven Ciccone :

I’ve been saving my money and was wanting to invest it in long term rental properties. I live in CA but the property prices are too high for me to get started. I would like to start out by buying something around $100k with 20% down. Is that obtainable? Thanks!

 Ive built up some really good relationships with some local lenders who do investor loans for OOS people.Not to mention Columbus is one of the best spots to invest, especially coming from California.

@Steven Ciccone

Hey Steven. Your numbers are definitely obtainable. Just for full transparency. I am not a lender, however I have a couple of really good connections with a couple of them that I trust and and use regularly. I would be happy to pass along their info if you are interested. Feel free to hit me up and I can share the information with you.

Good luck.

Mitch

Milwaukee is a great cashflow market but at $100K you will probably fall into the C class space.  If you are going to target a deal like that I would make sure to connect with a good PM before buying a deal.  Managing properties in rougher areas requires a good boots on the ground connection. 

Originally posted by @Steven Ciccone :

I’ve been saving my money and was wanting to invest it in long term rental properties. I live in CA but the property prices are too high for me to get started. I would like to start out by buying something around $100k with 20% down. Is that obtainable? Thanks!

 I think you will need to put 25% down. I know some lenders in Columbus, Ohio that you can chat with.

@Chris Wharton can you opine on this?

@Chris Wharton I hope you don't mind me asking you a question. I am new to the REI game. I decided on investing in maple heights cleveland. I don't have more then a month w2

So I'm looking into private money. I found some deals on the MLS but got beat out bc I didn't have financials set up. Should I first put the deal under contract then look for private money or try to set up private money then find a deal? Thank you so much I appreciate it

@Danny Smith I'm always a fan of financing first. If you don't have your affairs in line being in contract is a fruitless effort. Gotta be able to close.

One month of a full time w2 job might be sufficient for conventional terms. Probably worth a chat if you're free today.

Hi Steven,

Funny enough I just made my first out of state purchase as well this past weekend. It is definitely possible and there are tons of good markets out there. I see people above are already mentioning cities/states you can look at. I'd definitely pay attention to the where, because you want to start off as strong as possible. I have documented my entire out of state investing experience from where I started, to how I found my properties, teams, etc. I still have two more videos to upload discussing the underwriting process and what the final numbers on my first deal looked like, but maybe what I have uploaded so far can answer a lot of the questions you have. If they don't though feel free to reach out and I will dish out all that I learned.

GOODLUCK

Link:

Out of State Investing - YouTube

Yes that is very possible I would recommend these lenders they are national lenders and own real estate themselves and focus on working with buy and hold investors. 

Aaron Chapman SNMC

Greg Iverson